Correlation Between Singapore Reinsurance and Hyatt Hotels
Can any of the company-specific risk be diversified away by investing in both Singapore Reinsurance and Hyatt Hotels at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Singapore Reinsurance and Hyatt Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singapore Reinsurance and Hyatt Hotels, you can compare the effects of market volatilities on Singapore Reinsurance and Hyatt Hotels and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Singapore Reinsurance with a short position of Hyatt Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singapore Reinsurance and Hyatt Hotels.
Diversification Opportunities for Singapore Reinsurance and Hyatt Hotels
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Singapore and Hyatt is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Singapore Reinsurance and Hyatt Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyatt Hotels and Singapore Reinsurance is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Singapore Reinsurance are associated (or correlated) with Hyatt Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyatt Hotels has no effect on the direction of Singapore Reinsurance i.e., Singapore Reinsurance and Hyatt Hotels go up and down completely randomly.
Pair Corralation between Singapore Reinsurance and Hyatt Hotels
Assuming the 90 days trading horizon Singapore Reinsurance is expected to generate 1.55 times more return on investment than Hyatt Hotels. However, Singapore Reinsurance is 1.55 times more volatile than Hyatt Hotels. It trades about 0.14 of its potential returns per unit of risk. Hyatt Hotels is currently generating about -0.01 per unit of risk. If you would invest 3,540 in Singapore Reinsurance on November 1, 2024 and sell it today you would earn a total of 180.00 from holding Singapore Reinsurance or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Singapore Reinsurance vs. Hyatt Hotels
Performance |
| Timeline |
| Singapore Reinsurance |
| Hyatt Hotels |
Singapore Reinsurance and Hyatt Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singapore Reinsurance and Hyatt Hotels
The main advantage of trading using opposite Singapore Reinsurance and Hyatt Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singapore Reinsurance position performs unexpectedly, Hyatt Hotels can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hyatt Hotels will offset losses from the drop in Hyatt Hotels' long position.| Singapore Reinsurance vs. GMO Internet | Singapore Reinsurance vs. Sumitomo Rubber Industries | Singapore Reinsurance vs. MACOM Technology Solutions | Singapore Reinsurance vs. Charter Communications |
| Hyatt Hotels vs. Playa Hotels Resorts | Hyatt Hotels vs. TRAVEL LEISURE DL 01 | Hyatt Hotels vs. Suntory Beverage Food | Hyatt Hotels vs. COLUMBIA SPORTSWEAR |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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